Utilities, governments, banking expected to show the biggest increase in spending, predicts IDC

European spending on mobility products and services will grow to US$325 billion (€283.2 billion) by 2022, up from $293 billion this year.

This is according to IDC, which said this week that it forecasts a compound annual growth rate (CAGR) in spending of 2.4% for the five years from 2017-2022.

Consumers are expected to account for 65% of this total during the forecast period, with a little over half of this amount being spent on connectivity services, with the remainder going on devices, mainly smartphones.

IDC was keen to stress though that mobility will play a central role for enterprises as they adopt mobile technology in order to implement agile working practices and by extension improve competitiveness and customer engagement.

"New mobility use cases and technology adoption among enterprises is driving growth in all market segments from devices to software and services," IDC said, in a research note.

The research firm predicted that utilities, local and central government, and banking will be among the industries to see mobility spending CAGRs above 6% over the forecast period.

In terms of technology, services will account for $190 billion of total mobility spending in 2022. Within services, mobile connectivity will continue to represent the largest portion, however, growth will be relatively flat. In contrast, enterprise mobility services will see a CAGR of more than 14%.

Meanwhile, hardware will account for $129 billion of the total, followed by mobility software, which will be a small but growing proportion of overall spending.

On a geographic basis, Western Europe is expected to account for 79% of the $325 billion by 2022.

"Western European companies now have a clear understanding of the benefit mobility technologies can deliver and are evolving their approach — focusing on applications integrated with enterprise systems," says Gabriele Roberti, research manager for IDC EMEA Customer Insights and Analysis. "In customer-centric industries, like financial services and retail, mobility is becoming a pivotal part of digital transformation."